🚗 New GST Rates on Cars from 22 September 2025 – Big Relief for CSD Buyers
📌 Introduction
From 22 September 2025, the Indian government is rolling out a new GST structure on cars. This reform is expected to make vehicles more affordable for customers across India. However, the biggest benefit will be for those purchasing through the CSD AFD Portal, as they continue to enjoy 50% rebate on GST.
🆕 Updated GST Slabs on Cars
| Vehicle Category | Previous GST | Revised GST (22 Sept 2025) | CSD Buyer’s Effective GST |
|---|---|---|---|
| Hatchbacks & Small Cars (up to 1200cc) | 28% | 18% | 9% |
| Mid-Segment Cars (1200–1500cc) | 28% | 22% | 11% |
| SUVs & Luxury Cars | 28% + 40% Cess | 28% | 14% |
💰 Price Comparison Example
| Car Model | Base Price (Ex-Showroom) | Price for Public Buyers (After GST) | Price for CSD Buyers (After Rebate) |
|---|---|---|---|
| Maruti Alto K10 | ₹5,00,000 | ₹5,90,000 (18% GST) | ₹5,45,000 (9% GST) |
| Hyundai i20 | ₹8,00,000 | ₹9,76,000 (22% GST) | ₹8,88,000 (11% GST) |
| Toyota Fortuner | ₹35,00,000 | ₹44,80,000 (28% GST) | ₹39,90,000 (14% GST) |
🎯 Why This Matters for Defence Personnel
- The half GST rebate remains unchanged for CSD customers.
- Small and mid-size cars become significantly more affordable.
- Defence personnel, ex-servicemen, and their dependents will save lakhs of rupees.
- Ideal time for those planning to buy a car through the CSD AFD Portal.
⚠️ Key Points to Remember
- GST rebate is only valid on CSD AFD Portal purchases.
- Additional costs like insurance, registration, and road tax still apply.
- Buyer eligibility rules and quotas remain as per CSD policy.
🔎 Final Words
This GST change is a welcome move for car buyers in India. With small cars now under 18% GST and mid-segment cars under 22% GST, CSD customers will see unmatched savings.
If you are an eligible defence personnel or ex-serviceman, this is the right time to book your new car through the CSD AFD Portal and take advantage of reduced prices. 🚘✨
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